Start A Data Analytics Software Business - Business Ideas

Pat Walls

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Updated: September 16th, 2022

Start A Data Analytics Software Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Data analytics is a crucial aspect of an organization’s decision-making process. It involves the collection, analysis, and interpretation of data to gain insights and make informed decisions.

If you’re interested in starting a business in this field, the first step is identifying a particular industry or niche you want to serve.

Once you have a clear idea of your target market, you can begin developing user-friendly software that addresses that niche’s specific data analysis needs. This may involve creating custom reporting tools, dashboards, and other features that help your clients visualize and interpret their data.

Once your software is ready, you’ll need to market it effectively to potential clients. This may involve emphasizing the simplicity and efficiency of your tools and the value they bring to your client’s decision-making processes.

By focusing on your target market’s unique needs and challenges, you can build a successful data analytics business that delivers real value to your customers.

Starting a data analytics software business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell data analytics software, or selling data analytics software online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$133B

starting costs

$16.8K

gross margin

83%

time to build

360 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Office Space Expenses	$0	$7,000
App Creation Costs	$1,099	$20,099
Software Expenses	$162	$2,894
Advertising & Marketing Costs	$0	$2,500
Website Costs	$13	$215
Training & Education Expenses	$0	$850
Total Startup Costs	$1,274	$33,558

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Case Studies

Diesel Laptops: From Selling on eBay to Making $20M/Year

My name is Tyler Robertson, and I’m the founder and CEO of Diesel Laptop...

• $4.2M/mo

How I Created And Launched A Fitbit For Dogs

My name is Chelsea Rhoads and I am the CEOCo-Founder of pup-eeze, the sm...

• $10K/mo

How My Marketing Tool Reached $50K In Revenue Within 5 Months of Launching

My name is Aaron Beashel, and I am the founder of Attributer.io. Attribu...

• $30K/mo

How I Built An Airtable Plugin That Lets Users Manage Their Data Better [$80K/Year]

Hi! My name is Andy Cloke and I am the founder of Data Fetcher. Data Fet...

• $23K/mo

See all success stories ➜

Successful Businesses

Business	URL	Rank
Supermetrics	supermetrics.com	9,072
Snowflake	snowflake.com	10,565
FreightWaves	freightwaves.com	16,837
STATA	stata.com	31,105
Teradata	teradata.com	58,652
ATLAS.ti	atlasti.com	139,923
Statsbot	statsbot.co	168,851
adverity.com	adverity.com	176,066
Yellowfin BI	yellowfinbi.com	212,306
Burning Glass Technologies	burning-glass.com	224,938
Novetta	novetta.com	235,128

See all businesses ➜

Pros & Cons

Pros	Description
Flexibility	You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home	It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work	Starting a data analytics software business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable	With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website	A data analytics software business gives people a reason to visit your website and to keep coming back to you!
No overhead costs	To get your data analytics software business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your data analytics software business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process	A data analytics software business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues	With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Isolation	Often times, as a data analytics software business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes	As a data analytics software business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Key Stats

Startup Costs

Case Studies

Successful Businesses

9,072

10,565

16,837

31,105

58,652

139,923

168,851

176,066

212,306

224,938

235,128

Pros & Cons